US UoM Consumer Sentiment Index is seen at 47.8 in September

Consumer confidence is expected to cool further in September
One-year inflation expectation picked up pace to 4.6%

FXStreet Team FXStreet

American consumer confidence is expected to lose some traction in September, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.

The closely watched Consumer Sentiment Index is predicted to have weakened to 47.8 from 51.7 in the previous month, missing economists’ expectations (51) and signalling extra weakening in public confidence.

Furthermore, the Current Conditions index edged lower to 50.9 from 51.9, while the Expectations gauge followed suit, down to 45.8 from 51.5, highlighting a downbeat scenario for the months ahead.

Inflation expectations, meanwhile, appear to have reignited somewhat: the one-year outlook rose to 4.6% (from 4%), and the five-year forecast went up to 3.4% from 3.3%.

Market reaction

The US Dollar remains slightly offered, flirting with the 99.00 region and fully fading the post-CPI bull run when gauged by the US Dollar Index (DXY).

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold rebounds and retargets $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus in attention to the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline amid a marginal retracement in the US Dollar after the release of August inflation print.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.